WPIL Ltd - Global Water Pumps

While we should wait for clarity on mgmt thought process behind Nuclear biz sell off - a possible explanation lies in AR

In some ways Co has not been super aggressive in calls/ AGM for Nuclear part, and if they are seeing good opportunities in core biz (Industrial / irrigation/ flow sols) - it may make sense to divest niche part of biz which requires large investments to grow(as called out in AR). It can be read both ways but seems a sensible move if investments ROI is healthier in core segments.

Any investment in EU focused biz (Nuclear reactor) requires local capacities ramp up and is likely a big ticket(in context of WPIL modest size bal sheet) one given bigger competition in this industry. Below commentary also indicates growth in Group Atruia in Fy 23 was primarily from non nuclear areas and Nuclear is a longer gestation game.

As @sharemarketgen_ called out valuations are quite good considering EU context, need to see what management has to say about it and how do they plan to utilize proceeds of nearly 600 cr+ - for sure helps keep bal sheet very healthy + core biz aggression opportunity.

D - invested


If they ever thought of gaining any traction in Indian nuclear market, that optionality has perhaps been already lost, as KSB is already executing such orders for NPCIL. That may have played a role in the sale decision. Given the sales to mcap in India market and what they have got, the deal seems decent. It’s the strategic thought behind it which matters and hope mgmt will clarify it in next call.


WPIL has sold its step down subsidiary Rutschi for 68.7m euros, which is about 625 crs. It clearly means that its international operations need to be taken more seriously. The mgt., led by Mr. Prakash Agarwal needs to be complemented for their global aspirations, & more importantly succeeding in their endeavours, when for most Indian Co.’s, their global aspirations have proved to be their achilles heel! WPIL, which has been steadily getting re-rated over the past year, still has a long way to go when compared to its more illustrious peers with not necessarily better return ratios/ growth.

Perhaps the mgt. has done the smart thing by selling out, focusing on its core business & not spreading themselves too thin. Purely from an investor’s stand point, it will be more beneficial if the Co. can grow its Indian operations more meaningfully, given the predictable growth in the Indian economy. The mgt. though may continue with their global aspirations given their past record of successfully integrating their overseas operations. Whichever way the story unfolds, the steady re-rating of the Co. ought to continue, given its growth prospects & its execution capabilities.


Does the company plans to do NSE listing. Any idea on why it is not on NSE.

Its normal. Many small caps list on BSE and don’t list on NSE. Would think of this as an investor friendly behaviour. Good +ve
May be its more to do with the cost too. And liquidity is so low that they never end up listing on NSE. Or may be they listed on BSE and then NSE came in afterwards. So this one remained as pending.


Some notes from Q1FY24 Concall:

Reasons to Sell the Nuclear pump business:
Apart from what is already disclosed in the presentation;
(a) The industry environment is such that it will go through consolidation and a lot of M&A activity.
(b) Business needed significant capital expenditure to remain competitive
(c) Got good deal at EV/EBITDA 12x
(d) Helps increase cash reserves & strengthen the Balance sheet in current High Interest Rate environment

Note: Divestment will be completed by December this year, for now it will appear in the consolidated financials. This business makes up about 11% of top line.

Utilization of funds raised through sale: About Rs. 600Cr.
(a) Looking at inorganic opportunity in domestic or international market within Pumps
(b) Will wait till the sale goes through to decide how to utilise the funds

View: Management seems to have taken a prudent and rational decision in selling the nuclear business which will provide them with fire power to focus on growing core pumps business which has a large opportunity.

  • Management is conscious of the margins and the type of projects they want to take up to maintain healthy financials

  • Management says the challenges are on the execution side and not on Order book. Hence, focusing on project execution, orders are there to take up.

Business momentum:

  • To continue
  • H2 is stronger for domestic projects segment due to the on set of monsoon, about 60% higher than H1 during a year
  • Australia is turning out to be a good growth area with the subsidiary being the only Oil & Gas pumps provider → Huge oder book development

On NSE listing:

  • Participant requested the management to consider listing on NSE given their growing size, management responded saying “sure”, didn’t provide any concrete intention yet.

Defence products:

  • New area of growth
  • Co. has developed new products for the navy and is looking positive for good growth in the short-medium term. Will announce once things materialise.


  • One has to be conscious of the frequent upper/lower circuits due to low liquidity of stock with 70% held by the promoter.

  • Now considering 10-11% top & bottom line evaporating with the sale of Rutschi, and with the Domestic & International Products order book of Rs. 1100Cr to be executed over 1-2yrs and 2800Cr of Jal Jeevan order book to be executed over the next 3 years (from Q4 FY23 concall). It looks like this will more than compensate for this loss + inorganic acquisition is an optionality.

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Rajeev Ji (@RajeevJ) - Thanks for sharing your exemplary work on this name. How immune is the domestic project business from upcoming general elections, expected b/w April and May 2024?

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@Surender I would not make any changes to my portfolio due to the upcoming general elections. To a very large extent I ignore the macros as a whole because more often than not even the so called experts get it wrong half the time. Not saying that macros are not relevant, but there is no point worrying about them. Just focus on the performance of the companies that you hold.

WPIL Q1 numbers look decent to me. The mgt has guided for growth similar to Q1 for the full year, with more than 60% of the revenue to come in the second half of the year. The stock has become 3X in the last year or so, so periodic corrections are only to be expected. To my mind the story is playing out along expected lines & I continue to hold fully. Might even be tempted to add if there is a meaningful correction.


Seems like Jal Jeevan mission is picking up some pace as monsoons are nearing an end, Training in Lucknow and surrounding areas began yesterday and Dakshina Kannada Zilla Panchayat CEO says all rural houses in karnataka will have tap connection in the next 8 months.
Currently, only these states have 100% water connectivity - Goa, Telangana, and Haryana.
States with Least Coverage - Rajasthan, Chhattisgarh, Jharkhand, Uttar Pradesh.


Defense products mentioned by @mmali09 just had a navy order coming their way.

New area of growth for sure.

Walking the talk. “will announce once things materialise”


WPIL is planning to expand its scope of activities to include waste water systems including drainage & sewage treatment & distribution systems. The explanatory statement to the special resolution also makes for interesting reading.

127160_Postal-Ballot-Notice.pdf (712.6 KB)